The general index of the US dollar is trading with a rise in the middle of the trading session today, Tuesday, with the opening of the US markets at the opening of this week after the Martin Luther King Day holiday on Monday, as the dollar gains about 0.25%, trading at 95.47 levels, benefiting from the rise in the yield on US Treasury bonds to its highest level in two years.

The yield on US ten-year Treasury bonds rose more than 3% at levels of 1.83, recording the highest pace of rise since January 2020, while the two-year yields exceeded 1% levels for the first time since February 2020, coinciding with the high market expectations that we will witness an increase in US interest rates in March, as The markets are currently pricing in an opportunity of more than 90%, according to the CME Group tool from FedWatch, by raising the interest rate in March, and that the increase will be four times during the current year, which supports the returns of US bonds and thus the US dollar.

Less than a week separates us from the first US Federal Reserve meeting during the current year (next week), and accordingly, the intensity of the moves will increase with the approaching date of raising the US interest rate.

In terms of economic data released by the US economy moments before business activity in New York stopped in the Empire State survey in January to -0.7, compared to a growth of about 33 points in December readings, while expectations indicated a decline to 25 points.

The British pound, in turn, is trading on a decline for the second consecutive session, counting 1.3595 levels, down more than 50 pips against the US dollar.

Euro Despite the improvement in investor sentiment ZEW for business confidence and its rise to its highest level in six months to 51.7 and the rise of the index concerned with measuring confidence in the euro area to 49.4 from 26.8, the euro is trading down about 40 points against the US dollar at 1.1366 levels.

On the other hand, the Japanese yen trimmed most of its losses and is trading at 1.1472 levels, after testing 1.1505 levels in the Asian session this morning